Planning your next vacation can be an exciting time. However, things don't always go to plan, and travel plans are no exception. When unforeseen circumstances arise, it's nice to know that the expenses those circumstances can create are covered.
This is where travel insurance comes into play, offering peace of mind during your trips in multiple different ways. But is travel insurance worth it, and what exactly are the benefits that it offers? When is it too late to buy travel insurance? Below, we'll answer all of these important questions to help you decide if buying travel insurance is the right choice for your next adventure.
Why Purchase Travel Insurance?
Most people are aware that travel insurance covers trip cancellations, but this isn't the only perk that it offers. If you're wondering whether you should insure your next trip, here are all the benefits you can look forward to with most travel insurance policies:
Protection Against Trip Cancellations and Interruptions
We'll start with the most well-known benefit that travel insurance offers, and that's the ability to recover your costs in the event you have to cancel (or shorten) your trip. Life is unpredictable, and things like sickness, family emergencies, and severe weather can disrupt even the most well-thought-out travel plans. Unfortunately, many travel expenses like airline tickets and hotel bookings are often non-refundable. But with a travel insurance policy that includes trip cancellation and interruption coverage, you can still recover these costs in the event you have to cancel your trip or cut it short.
Coverage for Medical Emergencies Abroad
One of the most critical reasons to purchase travel insurance is to cover medical emergencies while you are abroad. Many Canadians are unaware that their provincial health plans (such as OHIP in Ontario or AHCIP in Alberta) provide only limited coverage outside of the country. Without travel insurance, you could be responsible for significant out-of-pocket expenses if you happen to need medical attention during your trip.
Coverage for Lost or Delayed Baggage
Finding out that your baggage has been lost or delayed is one of the most frustrating ways to begin a vacation. But travel insurance often includes coverage for lost, stolen, or delayed baggage. This allows you to replace essential items without out-of-pocket costs until your luggage is recovered. And, if it's never recovered, you can recover the value of everything you lost.
24/7 Emergency Assistance
Most travel insurance policies provide access to 24/7 emergency assistance services. These can be a helpful lifeline during emergency situations. Whether you need help finding a local medical facility, arranging an emergency evacuation, or dealing with a language barrier, these services ensure that you're never on your own when dealing with a crisis abroad.
Protection Against Travel Supplier Default
Another often overlooked benefit of travel insurance is the fact that it protects against travel supplier default. If a company that you've booked through like a tour operator or cruise line ceases its operations due to a reason such as bankruptcy, you could end up losing any money you paid to them. Travel insurance can help recover these costs, and it's particularly valuable when booking with smaller or lesser-known travel companies, where the risk of default may be higher.
When Should You Purchase Travel Insurance?
Travel insurance isn't a necessity for every trip. If you're driving a few hours to stay with family members, for example, you probably don't need a travel insurance policy. But there are plenty of instances where it's highly recommended, including scenarios like:
When Planning a Trip Outside Canada
You should always purchase travel insurance anytime you are planning to travel out of the country. The biggest reason for this is the fact that your provincial health plan will likely only offer minimal coverage for medical emergencies abroad. Out-of-country trips also tend to be more expensive and more unpredictable, which are both good reasons to have travel insurance.
Before Making Large Non-Refundable Bookings
If you're making any large, non-refundable bookings for things like flights, cruises, or vacation rentals, travel insurance is highly recommended. The sooner you purchase travel insurance after booking your trip, the sooner you’ll be protected if you need to cancel due to a covered reason. Some travel insurance providers also offer a "cancel for any reason" add-on. This will allow you to cancel your trip for reasons that might not be covered under standard policies so that you can be refunded even if all that happened is you simply changed your mind about the trip.
If You Have Pre-Existing Medical Conditions
If you have any pre-existing medical conditions, you should consider purchasing travel insurance that includes coverage for your specific health needs. While many insurance policies exclude pre-existing conditions, some providers offer coverage for stable conditions if you purchase your policy early—typically within a certain number of days after booking your trip. This coverage ensures that you don't have to pay out-of-pocket for medical care if your condition flares up while you're abroad.
When Traveling to Remote or High-Risk Destinations
Travel insurance is especially important if you are planning a trip to a remote destination with limited medical infrastructure. This is due to the fact that emergency medical evacuations can be extremely costly, especially if air transport is required. You should also buy travel insurance before any trip to a high-risk destination since the odds of needing evacuation or medical services are increased during these trips.
For Long-Term Travel or Extended Trips
Long-term travel, such as a gap year, sabbatical, or extended stay abroad, requires a different approach to travel insurance. In these cases, be sure to purchase a policy that covers extended durations. For frequent travelers, providers offer multi-trip annual plans that cover multiple trips over the course of a year, and this can be more economical than purchasing individual policies for each trip.
When is it too Late to Buy Travel Insurance?
"Can I buy travel insurance after departure?" is a common question people have. And, generally, the answer is no. Most travel insurance providers require coverage to be in place before you leave your home province or country. Once your trip has started, you usually won’t be able to buy a new policy.
Some providers might offer “late purchase” options or specific types of emergency-only coverage after departure. However, these plans tend to come with limited benefits and higher premiums.
If you plan to purchase travel insurance, it's always a good idea to do so as early as possible. Then you don't have to worry about the question of when is it too late to buy travel insurance.
What to Look for in a Travel Insurance Policy
It's important to do your research when choosing a travel insurance policy. Here are some of the things you will definitely want to check before you sign the dotted line:
- Medical Coverage Limits: Look for a policy with ample medical coverage (ideally at least $1 million) to cover things like emergency treatment, hospitalization, and evacuation.
- Trip Cancellation and Interruption Insurance: Make sure the policy covers a wide range of cancellation/interruption reasons, including illness, injury, and weather-related disruptions. You may also want to consider buying a "cancel for any reason" add-on for even more peace of mind.
- Baggage and Personal Effects Coverage: Check for coverage limits on lost or stolen luggage, and make sure it's enough to cover the value of the items you're bringing along.
- Exclusions and Fine Print: Along with researching what the policy covers, you need to also make sure you understand what it doesn't cover. For example, many policies won't cover high-risk activities like extreme sports or pre-existing conditions.
- Deductibles and Claim Process: Be aware of any deductibles you may need to pay and familiarize yourself with the claims process to avoid surprises.
Travel insurance offers a vital safety net for Canadians exploring destinations both near and far. From medical emergencies and trip cancellations to lost luggage and emergency assistance, a good travel insurance policy helps ensure that you're protected against the unexpected.
At GMS, we offer a range of comprehensive travel insurance policies for Canadian travelers. If you’re travelling soon and need to purchase travel insurance, check out our TravelStar Emergency Medical and Trip Cancellation and Interruption plans. For assistance choosing the perfect policy for your next trip, feel free to contact us today!